MACRO EXAM 1

Refer to the graphs for the united states and the united kingdom in the figure. if the starting point is point a, what is the opprotunity cost of the united kingdom producing one more barrel of oil?

.5 bushel of corn

according to the figure, the market quantity demanded at $20 is:

10

If an agricultural pesticide costs 10$ per gallon to produce and it adds 3$ worth of damage when it runs off into a river, the cost that is borne by society is:

13$

According to the figure, at equilibrium comsumer surplus is ___ and producer surplus is ____

400$; 200$

Jason purchased a new printer for 150$ although he was willing to pay 175$. The minimum price acceptable by the seller, Jasmine, was 145$

A consmer surplus of 25$ exists, and producer surplus is 5$

which of the following situations involves a negative externality?

Alma lives next to a freeway and the noise wakes her up every morning, against her wishes, at six oh clock

Allow the U.S to produce at point C and Chile to produce at point K on the production possibilities schedules. Now let the U.S trade away 6 loaves of bread to Chile in return for 20 bushels of avacados. Which of the following statements is true?

Both countries are made better off from this trade because they both consume outside their PPF

What would be the effect on the equilibrium price and the eqiulibrium quantity of new housing if mortgage interest rates rise and the costs of building a house rise simultaneously?

The equilibrium price cannot be predicted but the equilibrium quantity will fall

If the price of HDTV's falls:

The quantity supplied of HDTV's declines

Suppose that a major hurricane hits Florida, causeing widespread damage to homes and buisnesses. If the legislature imposes price controls in order to keep reconstruction costs reasonable, which of the following is the most likely result

a shortage of building materials

which of the following will cause and increase in the supply of yogurt?

an increase in the number of sellers in the market for yogurt

Given the production possibilities schedules for the united states and chile, which product should Chili produce if they are to produce the good for which they have a comparative advantage?

avacados

Demand for ice cream increases when

consumers purchase more ice cream at every price point

Production efficiency occurs when:

goods are produced with the lowest possible resource cost

Which is the most likely effect of a decrease in the price of flashlights upon the market for batteries?

increased equilibrium price and increased equilibrium quantity

As more honey is produced, the opprotunity cost of producing honey:

increases

what would be a possible opprotunity cost of you going to a doctor for a check up?

lost income due to not being at work for those hours

If the graph showed that as the amount of partying increased, your GPA decreased, then this relationship would be:

negative

if an increase in income leads to an increase in the demand for opera tickets, then opera concerts are a

normal good

Which point in the figure represents unemployed resources

point f

In the equation S=130-2T, where S is hot chocolate sales and T is temperature:

sales decrease by 20 if temperature increases by 10 degrees

better technology lowers the cost of producing computers so that

supply increases: quantity supplied increases at every price level; price decreases

which of the following will increase economic growth?

technological breakthrough in solar power production

In the figure, a movement from point b to point g could occur if:

technological improvements in making honey occur

Suppose the equilibrium price of a bunch of carrots is 1$. The price floor instituted by the government is $1.50

we woulld expect to see a surplus of carrots